Discussion in 'Index Futures' started by craigross, Feb 6, 2002.
If it is a case of fraud (ie if FWTG was a bucket shop) there is no protection for accounts.
Notice to Customers
Current status of matter involving Commodity Consultants International, Inc. ("CCI"), Futurewise Trading Group, Inc. ("Futurewise") and Todd Snively
Please visit the Commodity Futures Trading Commission's web site established for former investors of Todd Snively, Commodity Consultants International, Inc. and/or FutureWise Trading Group, Inc.
As discussed in the MRA that NFA took against Futurewise, CCI and Todd Snively, NFA received a customer complaint that led us to believe that Todd Snively, through CCI, was holding customer funds. Although NFA asked on several previous occasions, Snively never informed NFA that he was holding customer funds as he was required to do by NFA Rules (Compliance Rule 2-2 and Compliance Rule 2-11) and CFTC regulations.
In the course of our field investigation, Todd Snively provided false information regarding his operations to NFA on multiple occasions. Specifically, he stated that neither Futurewise nor CCI was holding customer funds, nor did they have any customer accounts.
After receiving evidence to the contrary while on our investigation, NFA confronted Snively in regards to CCI's operations. At this time, he stated that he would no longer answer questions and he requested that we leave his office. NFA does not have the authority or jurisdiction to seize or freeze assets in bank accounts. Therefore, CFTC representatives arrived at the scene and took actions that led to the temporary injuction being filed on February 8, 2002 in Federal District Court for the Eastern District of Michigan.
Trades placed through Futurewise were never placed on an exchange. Instead, Todd Snively took the opposite side of every trade. As the trades were never placed on a registered futures exchange, they therefore never existed.
Based on preliminary records received by NFA, CCI began operating in May, 2001 and has accepted customer funds since that time.
NFA and the CFTC are still in the process of investigating this matter, and request that any Futurewise customers who have held an account since May, 2001 contact NFA at 800-621-3570 if they have not already done so.
Also, if any individual who was an investor in a commodity pool operated by Futurewise, are asked to please contact NFA at the number above.
If anyone has additional information to send to NFA, such as deposit slips, wire transfer receipts or copies of checks, they may do so by sending an e-mail to: FuturewiseCustomers@nfa.futures.org or by sending a fax to (312)-658-1470.
Thank you for your patience and assistance.
Instead, Todd Snively took the opposite side of every trade. As the trades were never placed on a registered futures exchange, they therefore never existed.
Evidentally he heard that 90% of futures traders lose money, so obviously the people that take the other side of those trades must make money. I wonder if he was making money?
Separate names with a comma.